Digital signatures, widely hailed as the answer to Internet security problems, may not do enough to calm consumers' e-banking fears. Market analyst Datamonitor says companies must find more far-reaching solutions such as liability guarantees to address security issues.

The European Union passed a directive in December 1999 providing a framework to guarantee EU-wide recognition of digital signatures in e-commerce. The directive became law in the Republic this month as part the E-commerce Act.